3 Cryptos That Could Leave Bitcoin in the Dust This Year
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The fourth Bitcoin halving occurs every four years to curb inflation. Historically, post-halving, Bitcoin prices tend to rise due to decreased supply. Investors prioritize coins with solid use cases for optimal gains. Despite reaching record highs, Bitcoin remains a top choice. It’s a reasonable entry point with a recent dip to around $65,000 from March’s $73,000.
Three cryptos had the potential to dethrone Bitcoin due to its network flaws: high fees, slow transactions, no intelligent contracts and energy usage. Regulators imposing a 30% mining tax signal a shift towards PoS and ASIC-resistant coins.
Solana (SOL-USD)
First off the list is DeFi giant Solana (SOL-USD). SOL is believed to see more and more growth pre- and post-halving. Among other cryptocurrencies, Solana is the closest crypto to grow, especially Ethereum. With similar functionalities but cheaper transactions and faster speeds, Solana has surged 75% in 2024, driven by its Ethereum-displacing potential.
Solana-powered decentralized exchange Drift disclosed plans for a governance token alongside a substantial 100 million token airdrop. This token will enable holders to participate in future protocol decisions orchestrated by the Drift Foundation and proposed by community contributors.
With an announcement on April 16, Drift intended to allocate 10% of DRIFT’s total supply, equating to 180,000 users, based on their interactions within the Solana platform since its inception in 2021.
Crypto analyst Crypto Tony tweeted about SOL’s bullish symmetrical triangle pattern, often signaling bull rallies upon breakout. Despite being midway, suggesting potential volatility in days, AMBCrypto’s metrics found supporting indicators for a price uptick. SOL’s funding rate dropped, and open interest fell, suggesting a possible trend reversal.
Avalanche (AVAX-USD)
Another remarkable token to have pre-halving that could leave Bitcoin down the charts is Avalanche (AVAX-USD). With a strong market cap surge and an impressive 344% growth in recent quarters, AVAX is a big player to take advantage of. Through its secure and stable network, investors are optimistic that AVAX will see more increases post-halving.
Despite price pullbacks, AVAX-USD remains resilient, holding above crucial support levels, indicating stability in the market. With a neutral Relative Strength Index (RSI) of around 48, AVAX shows potential for stabilization and subsequent growth. Moreover, data indicating many AVAX holders are ‘In the Money’ suggests a reduced risk of panic selling, bolstering confidence for future growth.
The token peaked at $65 on March 18, then dropped to $30 on April 13, a 55% decline. On April 14, it rebounded to $38, hovering above $34. Despite a 50% loss in a month, most investors still see profits at 57.68%. Expect a recovery, possibly a wave B or a new uptrend, with a target near $45 and the potential to reach $50.
As investment flows in and development progresses, Avalanche is poised for significant strides in its market standing.
Polkadot (DOT-USD)
Due to its interconnected blockchains, one token that investors undervalue is Polkadot (DOT-USD). Its parachain system boosts throughput and interoperability, potentially exceeding Ethereum’s capacity with over 1,000 transactions per second. This expands its utility beyond finance to diverse sectors.
In 2023, the coin made scalability strides, boosting transactions and setting the stage for 2024’s growth. Trustless bridges and other enhancements bolstered its infrastructure. With Ethereum and Solana’s ascent, DOT aims for the top spot, backed by a robust developer community. Polkadot’s 1.0 release and asynchronous backing signify milestones, enhancing scalability for Web3.
Vigorous GitHub activity signals community involvement, reflected in its nearly 15% year-to-date gain. While Bitcoin dominates discussions pre-halving, DOT offers more significant upside potential, especially compared to Ethereum’s 45% gain. Its unique parachain structure and lower fees may secure its position against Ethereum through continuous adoption.
DOT emerges as a contender for Bitcoin’s throne, worth close investor scrutiny.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.
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